With so much to save for at once, how then can you prioritize? The truth is that only adequate planning can make you financially independent. So the earlier you know the right ways to save, the better.
Here are a few steps to take:
- MAKE A LIST OF WHAT YOU WANT TO SAVE FOR
2. NEXT, RATE EACH SAVINGS GOAL AS EITHER A NEED, WANT OR A WISH.
If saving for your mum’s health bill is a need, but going on a vacation to Dubai is a want or even a wish, you’ll want to make sure you’re on track to meet your mum’s health bill first. In other words, ask yourself: Is this savings goal critical (i.e., under no circumstance do you want your mum;’s health to deteriorate) or is it a “nice to have”? This way of thinking can help you prioritize, so you know which of your goals holds more water.
3. CALCULATE HOW MUCH TO SET ASIDE
To do this, you’ll need to look at your list of savings goals and then how much you need to be setting aside for each one, based on your most urgent needs. Some examples: Say you want 100,000 naira by September 2019 for a getaway of some sort and it’s January.
You’ll need to start saving about 11,250 naira a month to meet that goal. Or let’s say you want to save towards your child’s college fees, you’ll need to start saving 25,000 a month, which will add up to 1.2 million Naira in 4 years.
4. EMERGENCY FUND
This should actually be priority number 1, because you need a financial pillow for life’s inevitable tragedies. Without it, you’ll end up making a poor financial choice like loaning money or dipping into funds you should not. This will throw off all your entire plan for your other savings goals.
So in all, with the right planning, you should be able to meet all your financial goals.